Sunday, April 27, 2014

GVEA Board discusses generation and transmission strategies

The GVEA board held a special meeting on April 23, 2014 to discuss generation and transmission issues and short, medium, and long term strategic goals.   Mike Wright, VP responsible for these, gave a presentation about GVEA's current situation and how it got there.  Some of the information was extracted from a 2009-2010 Regional Integrated Resource Plan  performed by contractor Black and Veatch for the Alaska Energy Authority.  

It was originally scheduled as an executive session except for member comments at the beginning.  However, when I showed up as a member to make a comment at the beginning, the board chair kindly opened the meeting for the educational session, closing it a few hours later when it came time for the board to discuss what to do moving into the future with a new Integrated Resource Plan for GVEA, proposed to be contracted to Black and Veatch.    The latter is scheduled to come up at the executive session for the regular board meeting on April 28, 2014.   The Integrated Resource Study typically precedes a Rate Study that will be required once Healy 2 in on line for a year or so.  That will be a subject of other blogs in the future.

High points were:
  • Anticipated growth (flat*).
  • Age and condition of current generation facilities.
  • Age and condition of current transmission facilities, including substations
  • Challenges in dispatch and balancing generation with demand, optimizing efficiencies with cost of various sources of power (I have great respect for dispatchers).
  • Some discussion about what Ft. Knox and Pogo's commitments were and likely future.  In the mix: Flint Hills substantially reduced, Ft. Knox reduced, Pogo expanded, Clear AFB added.
  • Other large customers and generation folks in the Fairbanks area:   Pump 9 in Delta, Ft. Wainwright, Eielson.
  • Other generation and transmission in the Railbelt
    • Homer Electric (HEA) now on its own generation instead of buying from Chugach.
    • Matanuska Electric (MEA) now on its own generation instead of buying from Chugach, and with surplus power available for sale to other utilities.
    • Anchorage Munipal Light and Power new generation.
    • Opportunities and limitations for GVEA buying natural gas generated electricity from Chugach and in the future from MEA across the intertie.
    • Challenges in the Kenai with transmission costs for getting electricity from Bradley Lake.
Looking forward, I would imagine the GVEA board, in executive session, discussed what generation they might look to retire.  For example, GVEA committed to either installing $35 million emissions reduction equipment (SCR) on Healy 1 by 2022 or shutting it down by 2024. 

Some of my observations:
  • GVEA has the most diverse fuel-mix generation facilities of any utility in the Railbelt - coal, oil, natural gas from Southcentral, wind, and future trucked natural gas by 2015-16.
  • We will have way more generation available to us than needed - out peak load in 2013 was 211 mw with about double that inf capacity. 
  • We are still paying on quite a bit of this generation facilities - principal, interest and depreciation.
  • GVEA still has more debt to be taken on with the restart of Healy 2 - over $190 million that has not impacted our utility charges yet.
  • * growth is expected to be flat  (except if large projects come on line, such as Tower Hill Gold Mine in Livengood  for to 100 mw).   GVEA expanded their territory to include up to Livengood in 2013, but I hope that any generation needed is built on-site as, for this large load, it doesn't make sense to incur line loss.  Actually, I hope that Tower Hill builds their own generation.  Tom Irwin, former GVEA VP, is the local guy in charge of Tower Hill development so he should be aware of the impacts.
  • There is a long term objective to see if utilities can pool their interconnecting transmission facilities to provide for a more efficient system for all.    A couple of attempts have already been made without bearing fruit.   See the Regional Integrated Resource Plan mentioned above.   Also, reference the tariff arguments now in progress before the RCA between HEA and other utilities with HEA now generating their own.
There are more details, of course.   One thing that always impressed me with this business is how many moving parts there are to provide electricity to consumers.  It's more than just electrons!
     

Sunday, April 06, 2014

GVEA, Flint Hills closure, rate increases, debt

A recent Newsminer story detailing the impact of Flint Hills Refinery shutting down to GVEA, I've got a few mitigating solutions and some information to bring to light to our member-owners of GVEA.

GVEA wisely seeks to dispatch the cheapest energy first to meet demand.    Conservation is the cheapest source, electricity not used.   Natural gas from southcentral is the next cheapest, but is limited to about 80mw across the tieline.   GVEA's Healy 1 is the next cheapest, followed by the Co-gen plant at North Pole, then the two older oil fired generation then a few smaller units, including one in Delta.   They also have the Eva Creek Wind Farm and a smaller Delta privately owned wind farm from which they buy discount power.  Eva Creek, being free power, should be cheaper than coal, but harder to dispatch due to the variability.

I have been advocating a voluntary notification system to the board for over 2 years whereby, when they are about to need the costlier generation of oil, let folks know and see if short term reductions can be accomplished.    The CEO says the ball is in his court.   Lots of models out there, such as Nixle, the FNSB school notification, air quality alert system in progress, and a handful of utilities around the country.  No re-inventing needed for the wheel.  See my blog from last month.

We aren't in control of the Koch Brothers refinery decision.   They had a chance to participate in the trucked natural gas project, but backed out of it because they didn't want to work with anyone.

Related, GVEA's rate structure is such that, when the cost causer-cost payer principle that guides rate design is used, it has typically penalized those with the variable use (residential, small commercial) vs. the steady and interruptible rates paid by large industrial consumers.   When Healy 2 comes on, there will be another rate case and this should be part of the discussion.

Finally, while Healy 2 will be cheaper generation than North Pole on oil, we'll still have an increase in our utility charge to pay the loans and depreciation.   We are now beginning to see a bit of an increase from the $71 million invested in Eva Creek.  GVEA utility charge goes up 3.4% July 1.  Add to that almost $200 million from Healy 2 over the next few years.   That's a lot of debt, all told, almost double of what was allowable until we members allowed the board, in a bylaws vote, to exceed the $450 million book value of loans a few years ago.

So, will the Flint Hills Closure cost GVEA?  Yes.   Are there other ways of addressing the impacts?  Yes, again.  Is the there a larger picture to consider?  Most certainly yes?

GVEA Board met March 31.

The GVEA board of directors met on Monday, March 31.   There was predictably a couple hours of discussion to which members weren't invited, but topics were Healy 2, the closure of the Flint Hills Refinery, and the trucked natural gas project.  You can see the agenda on their website.   All board meetings now have info available.

We know a little more about the Flint Hills impact, as the Fairbanks Daily News Miner had an article last week about how and why energy costs were expected to increase.

My understanding is that the trucked natural gas project is likely to result in more expensive gas than hoped, around$17/mcf instead of the $10-$12/mcf previously bandied about.   If $12 is equivalent to $2/gal for fuel oil, then you can do the math.

As an aside, there will be an Interior Energy Open House Wedgewood hosted by state agencies AIDEA and AEA.  Also, the FNSB granted a $7.5 million revolving loan to the Interior Gas Utility Board (IGU) with lots of fiscal controls on expediture.   This $7.5 million was part of the settlement over valuation and back taxes that Alyeska Pipeline owed the FNSB, pending appeals.   And the governor is trying to stack the deck against the next assessment, but that's another story.

Other issues included:

Approval of a 3.4% increase in the utility rate, effective I believe June 1.  This was attributed to the debt interest on Eva Creek.   While this expected increase, it is also hoped that the energy charge would go down at least equal based upon the free wind energy.

Ft. Knox, asking what GVEA would charge to transmit Matanuska Electric power across GVEA's lines.   Apparently, Ft. Knox thinks they might get cheaper power than from GVEA directly.

The board did approve the Early Capital credit Retirement proposal you can see on the agenda.   First come, first serve is the policy, but the board (and myself, here) would like to see some outreach so it isn't just those in the know that take advantage of it.

GVEA is also getting prepped for the annual meeting April 30.  This year, there will be no freebies for registration to save $.  In many respects, the CEO is heading an effort to cut the fluff within the company. There will probably be fewer cookies at the meeting too.  OK with me.   There will still be must-be-present-to-win raffles.

This was the first meeting where a board member was actually 2 way audio and video from a remote location.   While not ideal, it makes it possible to attend meetings that have either been unsatisfyingly audio only or have a board member be a no-show.  Most board members don't miss meetings, a good thing of course.   Eventually, we might be able to get them live-streamed, but some on the board are currently not at all receptive.

The GVEA board changed their May meeting as the one calendared fell on Memorial Day that comes early this year.   So the May meeting will be May 19 instead.


Friday, March 07, 2014

1979 North Pole Refinery Energy Study

When GVEA was actively interested in being a part of the project to truck natural gas to Fairbanks the past couple of years, specifically to get a supply to their North Pole generation facilities, Flint Hills was also invited to the table.  Governor Parnell actually met with all the parties in 2013.   Flint Hills was asked about sharing some of their plans so that funding could be more forthcoming from the state.  Instead of cooperating, I was told that Flint Hills walked away and said they would not be involved in any way.  It would seem that their own secret business plans were more important than reducing the cost of energy from operating the refinery.  It kind of reminds me of their 'interested parties to buy the refinery', but only if Flint Hills could get off the hook for sulfolene cleanup, something they didn't adequately account for in their purchase agreement of the refinery from Williams Companies in 2004.  The refinery started operation in 1977 under Earth Resources, then was sold to Mapco in 1980, then was sold to Williams in 1998.

I thought I would share this 1979 North Pole Refinery Energy study that the FNSB produced.   It doesn't have any mention of environmental cost of pollution from spills, but had some other interesting numbers.   A chance to look at a bit of history.

Thursday, February 20, 2014

GVEA doings in 2013

It's been a while since we've posted, however GVEA has been busy in 2013.  Here are some of the highlights from my attendance at meetings as a member-owner.  

Much of GVEA meetings are in executive session to which we member-owners are not privy.   This being said, the board meeting books on line are becoming more complete for members.  Anyone interested should browse the minutes and agendas.   It is rare when more than a member or two comes to the board meetings.     Slowly, GVEA high level activities are becoming more transparent to members, a good thing in my book.

Healy 2
GVEA purchased the Healy 2 (experimental) coal fired power plant from AIDEA and has committed gobs more money to restarting it.   GVEA Healy 2 webpage  This was approved at the Aug. 26, 2013 board meeting and glad to report the minutes are on line.

The board approved a $45 million loan and purchase of the plant from AIDEA and another loan for $87,800: $35 million for improvements, $50 million for emissions controls, and $2.8 million for an on-site warehouse.   The April 17, 2013 minutes actually reflect a diffent amount than on the GVEA page referenced above. With about $380 million having been spent on the plant prior to this, the total cost of this relatively small 50 mw plant is over $500 million.   The purchase and work to restart increases GVEA's debt substantially.   As of the end of 2012, GVEA debt was in excess of $380 mm.   This translates into an increase in our utility rate.  GVEA hopes that the eventual operation of this will reduce the energy charge, as coal is cheaper than oil.

Energy Sense Program
This program lost the long term employee in Feb. 2014 and GVEA wasn't very proactive in replacing him, having only one energy auditor who only worked one-two audits each evening.   GVEA contracted with the Cold Climate Housing Research Center (CCHRC) $30,000 to review and make recommendations.   The recommendations saw the light of day at the Jan. 27, 2014 board meeting.

Inclement Weather
Interior residents experienced long electrical outages with icing of lines due to rain then freezing in Nov. 2013 and Jan. 2014.    Trees fell over on the lines with high winds as well.   I hope GVEA will consider burying high risk distribution lines where the ground is stable (i.e. not on permafrost or high water table areas).   While it may cost more initially, the cost of the Nov. 2013 was perhaps $2 million. 

Good Cents Program
By rounding up your electric bill (unless you have oped out), GVEA collects about $30,000 per month to give away to non-profits and charitable organizations and occasionally needy individuals.  While their requirements for grants aren't conducive to other than professional organization (tax status, audits, etc.), this is quite a bit of money.   If the word really gets out, there could be lots of competition for funds.  At the moment, this is pretty much a voluntary effort to administer.

Wind
GVEA now has a year of data from the Eva Creek Wind Farm down by Healy.  It's performed just about as well as expected, providing the equivalent of 6,800 homes' worth of electricity for a year.   GVEA refused to buy additional wind from Mike Craft's Delta Wind farm because they indicated they couldn't figure out how to dispatch the additional electricity.    It's complex to dispatch the cheapest electricity and wind being variable, makes it more difficult.  Still, I hope this will become better understood and perhaps with addition of storage, we can use more wind.

Natural Gas Trucking
GVEA tried to work with Flint Hills on a joint project to truck liquified natural gas (LNG) from Prudhoe Bay.  The legislature provided some grant and low interest loan money for this project.   They met with the governor and Flint Hills, which stood to substantially reduce its energy operation cost, backed out of the project, unwilling to share any of its economics.    With the Koch Brothers since deciding to shut down the refinery, it kind of mocks their excuse that the reason was the sulfolene contamination (even though they committed to continuing the mitigation), but that's a subject for a separate blog.

The shutdown of the Flint Hills refinery also affects GVEA in no longer being able to get naptha from the refinery and also a loss of income from the pipeline subsidiary that GVEA owns to distribute oil from the Trans Alaska Pipeline to the refinery.   You'll no doubt be reading more about this.

As well, the Fairbanks Natural Gas (FNG) company and the Interior Alaska Natural Gas Utility (AGU) fought out service areas in greater Fairbanks and North Pole with the Regulatory Commision of Alaska, resulting in a split of territories.   The trucked natural gas and legislative help in providing loans for storage puts the onus on both companies to start building out distribution lines to residents and companies.  Thus far, FNG hadn't been building out to other than large consumers.   AGU is contracting with the same company that is hired to build the liquificaiton plant in Prudhoe Bay to start distribution network in the concentrated North Pole area.    GVEA will also be getting natural gas, converting North Pole oil fired plant(s) to use natural gas.

GVEA Rates
Energy rates have bounced up then down, helped by natural gas fired electricity across the Intertie from South Central Alaska (Chugach and for a short time, really cheap electricity from Homer Electric Association).  Utility rate will continue to go up as depreciation, loan payments of principal and interest increase from Eva Creek ($70+ million) and soon Healy 2.   Healy 2 is supposed to be operational within 2-3 years and reduce our need for high cost oil fired electricity about the same time as trucked natural gas will become available.    I do expect our rates to not decline much if any In the medium term, they could actually increase.    Cost of power rates adjust quarterly.  Utility rates can be adjusted every 6 months up to 4%.    When Healy 2 comes on line, there will be a need for a formal cost of power study (likely costing more than a million dollars).

Peak Notification Methods
As part of my 12 point transparency plan of several years ago presented to the Member Advisory Board (MAC) and the GVEA Board, I suggested that GVEA find simple way to notify consumers when demand was about to require high cost power be started.   Ideas such as texting, email, phone, all automated at low cost.   The board took the issue up and assigned it to the MAC.   They in turn had an ad-hoc MAC task force look at it whereby the VP who ran the meetings wrote up that it made no sense and gave it back to the CEO.   This of course made no sense and some members of the board weren't very happy.   I heard rumors of another report being generated and will be chasing that down.    The idea is very simple - if people would curtail incidental electric uses on occasion, we all could save.   This particular VP has since retired and the board may be looking at the MAC functions, which are supposed to be an asset of the board and not a tool of GVEA executives.   Making that clear to MAC members and getting them involved in a different manner may help.   It has to be a two way street.  I will report separately on progress on the 12 point plan hopefully soon.

Alasconnect
This was a subsidiary of GVEA and mixed employees.   At the end of 2012, it was separated out, though GVEA contracts with them for computer services.    It remains an asset of GVEA somehow, so it would be in the members' interest if it were anything other than nearly totally transparent to members.  I've been working on this for about a decade.  One improvement here is that the VP for computer-networking for GVEA and the president of Alasconnect, the same person, won't be getting a double salary.   You can see how that worked out for him at on page 10, line (15) of GVEA IRS Form 990 for 2012 (and previous years 2010 and 2011, available on line).

Tri-Valley Electric Association
Members may recall the 2006 effort of GVEA to transfer all its generation and transmission assets to Tri-Valley Electric Association, something that came out of a national electric coop association discussion.   GVEA members wisely turned it down.   It turns out that GVEA realized it wasn't needed after all as in July, 2013, the board voted to dissolve the corporation.

There were of course other issues that came up.  Again, do avail yourself of the minutes and agendas.  Become an active member of our co-op!


Monday, June 18, 2012

A follow-up from my Feb 2012 blog on transparency.  I was waiting for the minutes to become available from the May 21, 2012 meeting.

The GVEA board voted at that meeting to endorse roughly half of my proposals:
1. Post complete meeting packet and maintain historically (they agreed for 3 years)
2. Post a list of GVEA committees and membership
3. Post a list of external committee members (of board and CEO, my intent)
4. Post meeting agendas and minutes of subsidiaries (and Good Cents, the board's idea)
5. Post historical minutes of Membership Advisory Committee (MAC)  (instead of just the last meeting)
6. Post Form 7 (GVEA's financial statement to the Rural Utilities System)  - the board also will post the IRS Form 990 on their website.

And finally, CEO Newton agreed to find a way to set up a notification system for when GVEA is heading into expensive peak power and see if we can get members to reduce and thus save us all high cost energy.

With Newton's departure, I hope the implementation of these items won't be delayed as more than competent staff remain to carry forth the board's request.

It took me a nearly 5 year effort to get the board to agree to post the meeting agendas and minutes.  I'd been working on these other items for several years as well, but consolidating them into a single readable document for the board seemed to resonate.   One of the interesting side facts is that I caught some flack for handing out the very same issues on transparency to the MAC board in May.  I think they have worked that out, but most amazing to me that it was an issue at all.

Finally, I welcome my new District 4 board member Frank Eagle to the GVEA board and thank outgoing District 4 board member Ward Merdes for his efforts on the board the last 3years.   Ward's main issue when running was 'Susitna Now'.  I opined to him that he would soon be inundated with an incredible amount of work on the GVEA board.  He now agrees, but was still surprised how much.   And Susitna-Watana  remains a long ways off.

Public Embarrassment - David vs. Goliath

For some reason, GVEA President-CEO Brian Newton, perhaps a result of his 'for shame' comment at the Annual Meeting, decided it would be a good idea to organize a protest/rally outside the Northern Alaska Environmental Center (NAEC).  The NAEC  is one of the 4 organizations who oppose restarting the Healy 2 coal fired powerplant without some conditions GVEA didn't like.     The board found out some days before and required Newton to be open about his and GVEA's involvement, which he then followed.   Chena Hot Springs and Chena Power owner Bernie Karl was the featured speaker.

The rally of about 75 was outnumbered 2:1 by Northern Alaska Environmental Center very enthusiastic counter-rally attendees and became quite the happening. (This article isn't exactly correct).  A generally friendly event, as the GVEA sponsored rally faded out, people on both sides mixed in the side street to share opinions.

A couple weeks later, the GVEA Board of Directors held a special board meeting at Sophie Station with the one executive session topic - Personnel Matters.    A few days later, GVEA issued a press release that Brian Newton had resigned from GVEA effective immediately to 'pursue other opportunities in the Lower 48'. 

It seems logical that this resignation is the result of the bungled rally, but more deeply, I believe, the result on escalating board dissatisfaction with Newton's performance on a number of issues of late.   There has been lots of negative press besides about his high salary and benefits ($450,000 though that likely includes some travel costs).

GVEA local counsel Cory Borgeson was announced to be acting CEO.  Perhaps his long time legal partner John Burns (recently Alaska Attorney General) will be taking Cory's place as local counsel.  While John seems a straight up guy, this might be a bit of a conflict of interest.   GVEA said they will be doing a nationwide search for a new CEO.

As a side note, Chena Power (see Bernie Karl above) apparently owes GVEA over $56,000 in past due electricity charges.   Unlike most consumers, Chena Power has not had their power cut for delinquency as is required by tariff.   I would hope that Chena Power can make payment so they don't get cut off.

For the record, this is the first time a head of GVEA has left under such circumstances.   It's hard on an organization and the board when this happens.   I hope they can find a replacement who is able to work with the various constituencies to bring affordable and environmental sound energy to GVEA members/ratepayers.


Tuesday, April 24, 2012

Public Hearing on Livengood line extension

GVEA had requested the RCA (Regulatory Commission of Alaska) to allow them to expand their service area to Livengood in expectation of providing power to the proposed Livengood mine.   I've found out that the expectation is a need of 100 mw of power, more than any single source of generation or demand we have now.  GVEA admits they would need to build new generation.

There were enough comments to the RCA that, 4 months later, the RCA just announced a public hearing on the matter for May 2, 2012 at the Westmark Yukon Room from 1 pm - 5 pm.   Here is the order for this.

I had suggested to the board that, should they go forward, GVEA consider installing a generator at Livengood and trucking gas direct and keep the accounting separate so that the mine pays the full cost for generating their own electricity.

GVEA Annual Meeting

The GVEA Annual Membership meeting is at the Carlson Center April 25, 2012 from about 6 pm  - 9:00+ pm.   http://www.gvea.com/inside/about/annualmeeting

I plan to speak about transparency, cost of energy, debt, and the proposed service area extension to Livengood.   How I fit all that into 2 minutes, don't know.

Small progress, finally GVEA has raised the show-up rebate from $15 to $25.   You might also win a 20 year old std cab pickup or some cash.

Tuesday, March 20, 2012

Membership Advisory Board March 2012 meeting

So, after presenting my transparency ideas to the GVEA Board, I thought it might be useful to also present them at the next MAC meeting, particularly as a couple of these ideas were mentioned from the previous board meeting (reducing executive sessions).   It is apparently rare that non-MAC members show up at the monthly MAC meetings, like only a couple per year.  


As a courtesy, I printed up paper copies for each of the members and, as I was walking up to where I would speak, I passed them out.    Up jumps GVEA Vice President of Marketing & Member Services Dave Gardner, who says I'm not allowed to pass out anything, only speak.  When a MAC member asked why, Dave indicated it was against policy, that I might be handing out Avon brochures. 

I don't normally call out individuals on issues, but in this case, the individual called himself out most unflatteringly.

I found this pretty absurd and was embarrassed at his shameless sputtering and what would seem to be a complete fabrication.   GVEA has no policy on what members can pass out at MAC meetings, particularly as members rarely show up.     I asked Bill Nordmark, president of the GVEA Board and he was unaware of any policy about this.    Of course, their policies are far from transparent, so one can't look them up.

It seems to me that Dave Gardner, having been the facilitator of the MAC meetings for a couple of decades (according to him) needs to let someone else do it for a while.     The perception is that he thinks the MAC is HIS committee.

GVEA does provide a lot of good educational information to MAC members at these meetings, but I'd like to see the MAC run their own meetings.

On Transparency

It's been a while since I posted, but I have been attending GVEA board meetings and, as usual, bringing up various aspects where I believe GVEA could increase transparency, which is a part of their proclaimed mission/policy.

In that vein, at the last meeting in February, I presented the board with a 12 item list of things they could do to bring about increased transparency.   The entire presentation can be viewed here, but listed below are the 12 topics.  At the subsequent MAC meeting, one suggestion was actually on the agenda: to post MAC meeting minutes on the GVEA website historically (not just the most recent meeting's minutes) and it passed.   More on that meeting in a subsequent blog.


  1. Post complete meeting packet and maintain historically
  1. Post list of GVEA committees and membership
  1. Post a list of external committee membership
  1. Notification system
  1. ‘Parsimonious’ executive sessions
  1. Executive session notice
  1. Subsidiary transparency
  1. District based two way communication
  1. MAC (Membership Advisory Board) transparency
  1. Webcast Board meetings
  1. Post Board policies
  1. Post Form 7 (this is essentially a monthly financial statement GVEA is required to submit to the Rural Utilities Service and is thus a public document)

Saturday, November 27, 2010

Will the RCA regulatory body ask utilities to implement conservation?

Will the Regulatory Commission of Alaska ask Alaska utilities to implement conservation measures?  Not if their staff report is implemented.   You can read more about this regulatory issue on R-09-005.

The sad part about the recommendations is that the federal government offered some guidance and then offered it to the states to look at or come up with their own ideas.   The Alaska Legislature, through an Energy Policy with SB 220 provided further incentive.   Yet the RCA's staff recommendation is just to get trained up more.   This docket has been out there for nearly 2 years, plenty of time for training.

I say it is time for the RCA to get off their duff and work for the long term benefit of the consumers they are charged to represent.  I urge anyone who has the stamina to read the documents to at least comment to the RCA.  Comments are due Dec. 9, 2010 by 4 pm.

Thursday, July 29, 2010

Juneau electrical rate increase

Due to some substantive cost overruns and a non-functional project for the next few years at least, the Lake Dorothy Hydro Project in Juneau is costing all ratepayers at least a 20% increase.   You can read more of the submissions from the RCA website.   It's actually rather amazing.

http://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=cbac123f-90b2-4ede-8234-4899e455f0fd

Wednesday, June 09, 2010

GVEA Bylaw changes - the analysis begins

Seventeen amendments to the bylaws of GVEA were passed by the membership after a count of over 5000 mail-in/drop-off ballots last night.

Two bylaw changes did show a marked difference with less support:

One change removed the bylaw section that limited the co-ops debt to $460 million. This now means that the policy the board developed and passed 3/29/10 that more than doubles this debt limit will be in effect and that the board can change at will. This policy (last page) and other policies modified with the bylaw changes can be found here.

The second bylaw change passed with less support was GVEA proposed Roundup Program, where your bill will be rounded up to the next even dollar amount and the funds collected (est. $15,000/mo.) to be given to charities of GVEA's choice.  The controversial aspect to this program was that it is Opt-Out, meaning you are included automatically and must call GVEA at 452-1151 or send an email to them (info@gvea.com) to opt out of the program.

With the many delayed and un-received ballots due to sending them via the Ruralite, I don't think that GVEA will be using that method of delivery again.   More likely is a push to develop an on-line voting method, now allowed by bylaw change.  

I would also hope that this many changes and some so poorly worded in one vote don't happen again.   It was generally poorly organized and not worthy of what we should expect from our co-op.